Smoothing

  • In any case some smoothing of the crude results would be necessary, since the direct asset share would show discontinuities due, for example, to changes by duration in the level of renewal commissions which, if directly reflected in the dividend scale, would presumably be puzzling to the policyholder.

1959 - SOA - Some Observations on Ordinary Dividends, Robert T. Jackson, Society of Actuaries - 48p